Takamiya Co., Ltd. · TSE:2445
Takamiya — Q2 FY2023 Earnings Presentation
58 slides from Takamiya's earnings presentation, Nov 18, 2022
Slide 1: Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 31, 2023
Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 31, 2023 Takamiya Co., Ltd. (2445:Tokyo) Notice: This document is an excerpt translation of the original Japanese Grand Front Osaka Tower-B Bldg. 27F, document and is only for reference purposes. 3-1, Ofuka-cho, Kita-k
Slide 2: Agenda
Agenda Topics Description of consolidated performance of the Second Quarter Fiscal Year Ending March 31, 2023 Progress of the “2021 Medium-Term Management Plan” Prospect for the future 2022/11/18 Page 2
Slide 3: Topics
Topics Aug. 26, 2022 Notice of Resignation of Executive Officers and Change of Commissioned Matters of Directors Aug. 26, 2022 Notice Regarding Changes in Officers Due to Absorption-type Merger between Subsidiaries Sep. 07, 2022 Notice Regarding Change of Subsidiary Officers Nov. 04, 2022 Notice Con
Slide 4: Company Overview of Takamiya Co., Ltd.
Company Overview of Takamiya Co., Ltd. Trade name Takamiya Co., Ltd. Registered Grand Front Osaka, Tower B, 27F, head office 3-1 Ofuka-cho, Kita-ku, Osaka, Japan Incorporation June 21, 1969 [Branches] 8 locations Business [Business offices] 12 locations Representative Representative director, Kazuma
Slide 5: Summary of consolidated performance: Business overview
1. Summary of consolidated performance (April 2022 to September 2022) 1.1 Business overview Sales Business In the temporary construction sector, there were delays in construction and postponement of purchase due to soaring material prices, and there was a move toward Consolidated results for the S
Slide 6: Consolidated performance
1. Summary of consolidated performance (April 2022 to September 2022) 1.2 Consolidated performance Consolidated 2Q FYE Mar. 31,2023 2Q FYE Mar. 31,2023 2Q FYE Mar. 31,2023 2Q FYE Mar. 31,2022 % Gross profit Results Forecast Revised Forecast Results Results change This was due to an increase in （Un
Slide 7: Factors of increase/decrease in net sales and operating income
1. Summary of consolidated performance (April 2022 to September 2022) 1.3 Factors of increase/decrease in net sales and operating income Net sales Operating income 224 million yen decreased (Down 1.1% YoY) 4 million yen increased (up 0.5% YoY) Sales increased in Rental and Overseas businesses. I
Slide 8: EBITDA (Operating income + Depreciation)
1. Summary of consolidated performance (April 2022 to September 2022) 1.4 EBITDA (Operating income + Depreciation) (Unit : million yen) EBITDA 147 million yen increased (up 4.6% YoY) Operating income increased slightly. As for depreciation, both rental asset depreciation and capital investment d
Slide 9: Performance by segment
1. Summary of consolidated performance (April 2022 to September 2022) 1.5 Performance by segment Segment Operating income Net sales (Segment operating profit margin) % change % change Unit : million yen 2Q FY2022 2Q FY2023 2Q FY2022 2Q FY2023 (YoY) (YoY) Sales 871 496 7,134 6,040 (15.3)% (43.0)% Bus
Slide 10: Progress status of earnings forecast
1. Summary of consolidated performance (April 2022 to September 2022) 1.6 progress status Earnings forecast （million yen） Net Sales FY23.3 9,017 10,782 45,000 FY22.3 9,242 10,781 9,800 9,976 degree of progress 43.9％ Operating FY23.3 181 582 2,300 income FY22.3 77 681 227 695 degree of progress 33.1％
Slide 11: Sales business: Factors of increase/decrease YoY
2. Sales business 2.1 Factors of increase/decrease YoY Net sales Operating income: 1,094 million yen decreased (Down 15.3% YoY) 375 million yen decreased (Down 43.0% YoY) Temporary equipment for construction work and sales of used equipment decreased, Profits decreased due to the effects of lowe
Slide 12: Sales business: Net sales by product field
2. Sales business 2.2 Net sales by product field Customer has a deep interest in next-generation scaffolding, and inquiries for new procurement, replacement, and additional purchase projects are trending steadily. In environment-related products, there were large-scale sales in the previous fiscal y
Slide 13: Sales of Iq System
2. Sales business 2.3 Sales of Iq System Sales of the Iq System decreased by 14.2% (Down 273 million yen) YoY. Both new and additional purchases steadily change/ Although there are many projects, it takes time to conclude contracts. The market has begun to understand the price increase, but the pric
Slide 14: Number of sales destinations for Iq Systems
2. Sales business 2.4 Number of sales destinations for Iq Systems The cumulative number of companies that purchased the Iq System increased steadily. Repeat demand is expected to increase as the number of purchasing companies accumulates. (Unit : company) Number of new Iq System sales companies / cu
Slide 15: Prevalence of Iq System
2. Sales business 2.5 Prevalence of Iq System The spread of next-generation scaffolding in the industry is firm (FY ended/ending March 31) Iq system sales square footage (Unit：million square meter) (Our sales + Rental assets) 8.75 8.15 7.24 Cumulative square footage of 6.48 Iq Systems sold 5.32 3.65
Slide 16: Iq System market share
2. Sales business 2.6 Iq System market share Next-generation scaffolding and Iq System penetration in the industry is going well Scaffolding market share Market share of next-generation scaffolding Iq System About 11％ Iq System Traditional Other next Other next About 37％ scaffolding generation scaff
Slide 17: Rental business: Factors of increase/decrease YoY
3. Rental business 3.1 Factors of increase/decrease YoY Net sales: Operating income: 326 million yen increased (Up 2.8% YoY) 590 million yen increased (Up 134.0% YoY) The utilization rate (rental volume) remained high, mainly for maintenance and repair Operating income increased due to an increa
Slide 18: Trend of average utilization rates of rental assets
3. Rental business 3.2 Trend of average utilization rates of rental assets * Trend of utilization rates of rental assets looks like a mountain with its peak at the 3Q each year * Utilization rate = rented amount / overall holdings The utilization rate of the Iq System remained at a high level, and t
Slide 19: Ratio of Sales by Area
3. Rental business 3.3 Ratio of Sales by Area The Kanto block is performing well, partly due to the impact of maintenance and repair work in the Tokyo metropolitan area. FY2021 FY2022 2Q FY2023 3.2% 3.2% 11.6% 3.7% 10.8% 10.2% Tohoku Kanto 28.3% 31.3% 31.3% Chubu 36.9% 41.5% 42.4% Kansai 20.0% Kyusy
Slide 20: Overseas business: Factors of increase/decrease YoY
4. Overseas business 4.1 Factors of increase/decrease YoY Net sales: Operating income: 1,332 million yen increased (Up 42.5% YoY) 37 million yen increased (Up 20.4% YoY) Domestic sales and rental sales in South Korea increased. Despite an increase in SG&A, Net sales increased due to Vietnam's
Slide 21: Change in Consolidated Balance Sheet
5. Change in Consolidated Balance Sheet The increase in total assets is due to the increase in inventories and rental assets as a result of stable production in anticipation of future demand. Equity ratio declined 31.6% (end of the previous term: 31.8%) [Asset] (major subjects) (Unit : million yen)
Slide 22: Cash flow statement
6. Cash flow statement As a result of continuing production in anticipation of future demand, inventories increased and operating cash flow turned into expenses. (Unit : million yen) [Cash flows from operating activities] (Unit : million yen) 2Q FYE Mar.31, 2022 2Q FYE Mar. 31,2023 Profit before inc
Slide 23: Earnings Forecast for the Fiscal Year Ending March 31, 2023
7. Earnings Forecast for the Fiscal Year Ending March 31, 2023 For the cumulative second quarter, we have revised our earnings forecast. However, with regard to the full-year earnings forecast, we have left the original plan unchanged, taking into consideration future uncertainties such as soaring r
Slide 24: Changes in number of shareholders and shareholder composition
8. Changes in number of shareholders and shareholder composition FYE Mar. 31, 2020 FYE Mar. 31, 2021 FYE Mar. 31, 2022 2Q FYE Mar.31 , 2022 Shareholders at the end of the period 4,092 3,463 4,052 4,192 Shareholder composition Government and local public entities 0.00 % 0.00 % 0.00 % 0.00 % Financial
Slide 25: Status of shareholder return
9. Status of shareholder return FYE Mar. 31, 2023 FYE Mar. 31, 2019 FYE Mar. 31, 2020 FYE Mar. 31, 2021 FYE Mar. 31, 2022 (Forecast) Dividend 11 yen 14 yen 14 yen 14 yen 14 yen 1Q － － － － － 2Q 4.0 yen 6.0 yen 6.0 yen 6.0 yen 6.0 yen 3Q － － － － － 4Q 7.0 yen 8.0 yen 8.0 yen 8.0 yen 8.0 yen Total amoun
Slide 26: Progress of the 2021 Medium-Term Management Plan
Progress of the “2021 Medium-Term Management Plan” 2022/11/18 Page 26
Slide 27: Management Vision
Progress of the “2021 Medium-Term Management Plan” Management Vision Management Vision Create new value through transformation and aim for sustainable growth by becoming a partner to our customers. (Construction of a stock-type business model) 2022/11/18 Page 27
Slide 28: Medium-term management plan performance targets
Progress of the “2021 Medium-Term Management Plan” Performance target Net Sales Operating income Operating income margin 8.0% Medium-term management plan performance targets 4.2% 5.1% （Million yen） (As of May 31, 2021, when announced) Fiscal year ending March 31, 2024 60,000 39,800 45,000 Net Sale
Slide 29: Basic Strategies
Progress of the “2021 Medium-Term Management Plan” Basic Strategies 1. Develop services that blend hardware and software, with a focus on the Iq System 2. Strengthen products for maintenance/repairs and infrastructure redevelopment 3. Nurture businesses beyond the temporary equipment sector 4. Redev
Slide 30: Construction of the Takamiya Platform
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Construction of the Takamiya Platform Temporary equipment scaffolding construction rental company scaffolding company manufacturing company Temporary construction Tem
Slide 31: Takamiya Platform DX
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Construction of the Takamiya Platform Takamiya Platform DX 2022/11/18 Page 31
Slide 32: Web ordering system OPERA
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Web ordering system "OPERA" Planned expansion function Platform service provided by OPERA delivery vehicle Order tracking Rental history order confirmation function
Slide 33: Semi-automatic drawing tool RABOT
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Semi-automatic drawing tool "RABOT" Semi-automatic drawing of plans, elevations and sections for the Iq System and YT lock System. Semi-automatic creation of di
Slide 34: Takamiya Lab. West
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Takamiya Lab. West A research and development base that develops and provides new technologies and services to evolve the platform and enhance user convenience and
Slide 35: Joint product development
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Joint product development Joint development of products that meet the needs of sites and customers Obayashi Corporation SymEnergy Inc. AZUMA SHOKAI Co.,Ltd. Cross l
Slide 36: Platform function that change business
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Platform function that change business Iq Sharing (supports management and operation of purchased products) ・It is possible to pull out and use the purchased temp
Slide 37: Net sales of platform business
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Net sales of platform business (Million yen) 758 Comparing the 6 months from April to September with the year last year 641 +117 million yen （+18％） FY2022 2Q FY2023 (
Slide 38: Iq System and Takamiya platform as de facto standard
Progress of the “2021 Medium-Term Management Plan” ① Develop services that blend hardware and software, with a focus on the Iq System Iq System Iq System and Takamiya platform Platform users distribution become the de facto standard increase volume increase in the temporary construction industry Nex
Slide 39: Maintenance/repairs and infrastructure redevelopment
Progress of the “2021 Medium-Term Management Plan” ② Strengthen products for maintenance/repairs and infrastructure redevelopment Changes in maintenance and repair work Percentage of infrastructure that is 50 years old after construction (Trillion yen) quantity 18.3 23.3 33.3 80 30% 70 About 28.0% 2
Slide 40: Hanging shelf scaffolding sales results
Progress of the “2021 Medium-Term Management Plan” ② Strengthen products for maintenance/repairs and infrastructure redevelopment Hanging shelf scaffolding sales results (SPIDER PANEL, VMAX) YoY (12.1)％（ Decreased by 36 million yen from the previous fiscal year ） （Million yen） SPIDER PANEL Panel ty
Slide 41: Agriculture business: social issues
Progress of the “2021 Medium-Term Management Plan” ③ Nurture businesses beyond the temporary equipment sector Agriculture business Social issues related to agriculture... Total food self-sufficiency rate decreased by 36% Food self- based on the amount of heat supplied sufficiency rate 1965 -2020 Tot
Slide 42: Hanyu Aisai Project
Progress of the “2021 Medium-Term Management Plan” ③ Nurture businesses beyond the temporary equipment sector Agriculture business Hanyu Aisai Project Demonstration cultivation project using our products ・Using “G-Castle Neo48” & “G-Castle Pro1” ・Collect data on cultivation environment, yield and
Slide 43: Agriculture Platform
Progress of the “2021 Medium-Term Management Plan” ③ Nurture businesses beyond the temporary equipment sector Agriculture business Develop products and services that solve the problems faced by farmers, and provide them in a comprehensive manner through group collaboration. TAKAMIYA TAKAMIYA TAKAMIY
Slide 44: Photovoltaic business: POGERO
Progress of the “2021 Medium-Term Management Plan” ③ Nurture businesses beyond the temporary equipment sector Photovoltaic business Introduce renewable energy and aim to reduce greenhouse gases to achieve carbon neutrality Domestic Cumulative Introduction of Photovoltaic Power Generation （GW） 71.8 N
Slide 45: Redevelop overseas business bases
Progress of the “2021 Medium-Term Management Plan” ④ Redevelop overseas business bases Local Philippines Sales/Rental construction (DAI) company Sale manufacturing and sales Local construction JAPAN Korea Sales/Rental manufacturing and sales company and （ Takamiya Group ） (Hory Korea) neighboring co
Slide 46: Overseas business earnings trends
Progress of the “2021 Medium-Term Management Plan” ④ Redevelop overseas business bases The impact of restrictions on movement due to the new COVID-19 has become minor, and business infrastructure development is progressing smoothly in each country, and business activities have resumed. Earnings tren
Slide 47: Prospect for the future
Prospect for the future 2022/11/18 Page 47
Slide 48: Initial forecast and current situation
Prospect for the future｜ Initial forecast and current situation Generally in line with initial forecasts. Rental asset utilization rate exceeded expectations Outlook for the current fiscal year as of May 2022 Current situation Due to the rapid depreciation of the yen in the first half of the year,
Slide 49: Domestic construction investment is strong
Prospect for the future | Domestic construction investment is strong Source: Created from "Construction Investment Outlook" announced in October 2022 by the Ministry of Land, Infrastructure, Transport and Tourism (Unit : billion yen) 61,324 61,826 63,450 64,330 58,738 60,900 61,250 Construction inve
Slide 50: Industry related projects
Prospect for the future | Industry related projects Large-scale projects in Japan tend to be delayed or postponed, and infrastructure maintenance and repairs such as transportation infrastructure are progressing in various places Hokuriku- Shin-Meishin Expo in TOKAI-KANJO Integrated Resort in Osaka
Slide 51: Plan to meet the criteria for maintaining the prime market
Progress of specific initiatives in the plan to meet the criteria for maintaining the prime market ①Strengthening IR FY22 1H FY22 2H FY23 1H FY23 2H FY24 1H FY24 2H FY25 1H FY25 2H States Enhancement of information disclosure Accelerating information disclosure and provision in English to overseas i
Slide 52: Plan to meet the criteria for maintaining the prime market (continued)
Progress of specific initiatives in the plan to meet the criteria for maintaining the prime market ①Strengthening IR FY22 1H FY22 2H FY23 1H FY23 2H FY24 1H FY24 2H FY25 1H FY25 2H States Improving corporate recognition Posting a news release on TDnet Done Report to Bloomberg (English support) Not Y
Slide 53: Reference Information
Reference Information 2022/11/18 Page 53
Slide 54: IR information
IR information • Video streaming of Financial Results Briefing • Disclosure of English versions of Summary of Financial Results, Results Briefing Materials, and Timely Disclosure Release (partly) • Issuance and Web release of Integrated Report (Japanese/English) • Disclosure of non-financial informa
Slide 55: ESG information
ESG information Human resource development Promoting "Human centered capitalism" style management and measures centered on Such information is publicized to human resources visitors on a large signage • Promoting in-house projects centered on mid-level/young employees • Incentive reward according to
Slide 56: Stock Price of TAKAMIYA (2445:Tokyo)
100,000 200,000 300,000 400,000 500,000 600,000 0 Jan-2009 May-2009 Sep-2009 Jan-2010 May-2010 Sep-2010 Jan-2011 May-2011 Average daily trading volume Sep-2011 Jan-2012 May-2012 Sep-2012 Jan-2013 May-2013 Sep-2013 Jan-2014 May-2014 Sep-2014 Jan-2015 Stock Price of TAKAMIYA (2445:Tokyo) May-2015 Sep-
Slide 57: Comparison of Share Price and Nikkei 225
Jun-2009 Oct-2009 Feb-2010 Jun-2010 Oct-2010 Feb-2011 Jun-2011 Nikkei 225 Oct-2011 Feb-2012 Jun-2012 Oct-2012 Feb-2013 Jun-2013 Oct-2013 Takamiya Feb-2014 Jun-2014 Oct-2014 Feb-2015 Jun-2015 Oct-2015 Feb-2016 Jun-2016 Oct-2016 Feb-2017 Jun-2017 Oct-2017 Feb-2018 Jun-2018 Oct-2018 Feb-2019 Jun-2019 O
Slide 58: IR contact
IR contact HP Company name ： Takamiya Co., Ltd. Grand Front Osaka, Tower B, 27F, Address ： 3-1 Oofuka-cho, Kita-ku, Osaka, 530-0011, Japan For Investor HP ： https://www.takamiya.co/en/ For Investor ： https://www.takamiya.co/en/ir/ CONTACT ： PR / IR Department Email ： ir@takamiya.co This material is